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Metro Manila’s BPO Sector Outpaces India

by: Sarah Joson

Friday, October 4, 2013 | Outsourcing News |

Metro Manila, Philippines has taken the top position as the lead outsourcing destination.

According to a report created by Knowledgefaber, a research consultancy firm, the Philippines has bested seven of India’s outsourcing hubs, all of which are in the top 25 cities list, when it comes to setting up a business process outsourcing (BPO) operation. The report also found that the banking and capital market spends the most on business process management (BPM).
The Philippines gradually became dominant in the BPO scene from 2010. Canada and Poland are also identified as strong players because these are able to address language constraint issues.

India’s $20-billion BPO sector grew 8.9 percent, while the Philippines grew 15.6 percent.

Knowledgefaber’s Nagarajan Ganesan said the Philippines’ BPO sector developed because of its large and competent workforce for the voice segment. Moreover, its affinity to Western culture makes it a desirable outsourcing hub.

IT and software organization Nasscom said India has lost 10 percent of its global market share in the past five years, majority of which came from voice-based processes.

Meanwhile, two of India’s key outsourcing destinations, Bangalore and Mumbai, ranked fourth and third in the list.

Kris Lakshmikanth, CEO and managing director at HeadHunters, said India is still the leader globally for non-voice outsourcing but the competition is getting tougher as new destinations are threatening to take India’s place.


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